Which of the following best describes arbitration?

Arbitration is best described as a legal process where a third party makes a binding decision on the dispute. In this method, the parties involved agree to submit their disagreements to an arbitrator or a panel of arbitrators. This third party listens to the arguments and evidence presented by each side and then issues a decision that is typically final and binding, meaning that the parties must adhere to the arbitration outcome and generally cannot appeal it in court. This process is often chosen as a more efficient, confidential, and cost-effective alternative to traditional litigation.

The other options do not accurately describe arbitration. A collaborative discussion between parties implies a more informal negotiation, rather than a structured process with a binding outcome. Negotiating a solution directly without assistance is more aligned with mediation, where resolutions are not enforced. A public trial with a jury is a characteristic of the court system, which is quite different from arbitration, where proceedings are generally private and conducted outside of the court system.